FACULTY OF LAW, ECONOMICS AND FINANCE

We are pleased to present theLSF - INCEIF Islamic Finance CourseIslamic Capital Markets: Principles and Practice

Venue: Luxembourg School of Finance 2B rue Albert Borschette L-1246 Luxembourg

Open to the World

Islamic Capital Markets Principles and Practices

23 - 26 April 2013

Islamic Capital Markets Principles and Practices

23 - 26 April 2013

A comprehensive course in Islamic Capital Markets for Luxembourg finance professionals.

In co-operation with INCEIF, the Global University For Islamic Finance, the LSF is pleased to offer a comprehensive four-day course on Islamic Capital Markets.

Taught by an INCEIF professor, the course is tailored to professionals of finance seeking to gain a deeper understanding of Islamic capital markets. The course begins with a discussion on the underlying principles and philosophy of Islamic capital markets. It then examines Shariah-compliant instruments including short- and long-term debt, equities, investment funds, and derivatives, and the Islamic Interbank Monetary Market.

Open to the World

Introduction to Islamic Finance, Products, Philosophy and Capital Markets

Morning

» Overview of Capital Markets

» Role and Function of Capital Markets

» Capital Markets and Development – What Ails Capital Markets?

» Real & Financial Sectors; Linkages

» Discussion – Capital Market Problems- (Japan, US & EU)

» Underlying Shariah Principles & Philosophy- Fiqh Muamalat- The roots of Islamic Finance- Key prohibitions and justifications- Common threads and requisites

Afternoon

» Similarities Between Islamic Finance and Ethical Investment

» Risk-sharing Philosophy and Framework

» Risk-sharing Relative to Conventional Financing- Impact of risk-sharing on leverage, incentive structure and returns

» Islamic Financing Contracts- Profit & loss-sharing contracts- Mudarabah, Musyarakah - Sale / deferred sale contracts- Murabahah, Ijarah and other common Islamic Finance contracts

» Islamic Finance – Regulatory / Supervisory Institutions

» Discussion / Exercise

Day 1

This course is supported by

Short and Long Term Islamic Finance Instruments

Morning

Funding Short Term Needs

» Islamic Interbank Monetary Market (IIMM)

» The Need for IIMM

» Components of IIMM

» Instruments Traded in IIMM

» Pricing IIMM Instruments

» Determining Interbank Deposit Rates

» Discussion – Issues of Risk in IIMM

» Bursa Suq Al Sila

» The Commodity Murabaha

» Raising Funds Using Commodity Murabaha

» The Liquidity Management Centre Bahrain

Afternoon

» Exercises – Pricing IIMM instruments

Funding Long Term Needs

» Introduction to Sukuk

» What are Sukuk

» Debt, Equity and Sukuk

» Sukuk vs. Bonds

» Discussions – Growth Performance

» Fundamentals / Requirements for Sukuk

Day 2 Sukuk

Morning

» The Sukuk Issuance Process

» Sukuk Players

» Types of Underlying Contracts of Sukuk

» Differences Amongst Sukuk by Contracts

» Sukuk Contracts and Ratings

» Sukuk Term Sheets

» Discussion – Sukuk Structures

» Ijarah, Murabaha and Combination Structures

» Evaluation of Sukuk Structures

» Sukuk Structure and Cash Flows

» Alternative Sukuk Structures and Risk Profiles

» Exercise – Identifying Appropriate Sukuk Structure

Afternoon

» New Sukuk Design Structures

» GDP Linked Sukuk

» Sukuk Linked to Export Earnings

» The Esham Structure

Pricing/ Valuation of Sukuk

» Valuing Sukuk with Fixed Cash Flows

» Valuing Sukuk with Variable Cash Flows and Unknown Redemption Amount

» Valuing Sukuk with Embedded Options

» Exercises / Mini Case on Sukuk Issuance / Valuation

Day 3

Islamic Equities and Shariah Compliant Derivatives

Morning

» Islamic Equity Markets

» Components of Islamic Equity Market

» Stock Screening Methodology

» Dow Jones vs SAC Screening Methods

» Comparison of Alternative Stock Screening Methodology

» Islamic REITs

» Structure of Islamic Reits

» Islamic ETFs (Exchange Traded Funds)

» Islamic Private Equity Funds

Afternoon

» Shariah Compliant Derivative Instruments

» Islamic Finance Instruments with Features of Derivatives Instruments

» Bai Salam, Istisna and Joa’la contracts

» The Istijrar Contract

» Managing Asset – Liability Mismatches of Islamic Banks

» Islamic Profit Rate Swap

» Shariah Compliant Instruments for Managing Exchange Rate Risk

» Islamic Currency Forward

» Islamic Currency Option

» Exercises – Mini Cases / Problem Solving

Day 4 Prof. Dr. Obiyathulla Ismath Bacha

» Head of Graduate Studies Department at INCEIF

» Professor of Finance

» MBA, MA, DBA (Boston University)

» Research Interest: International Finance and Financial Derivatives

Professor

Practical details

Venue: Luxembourg School of Finance 2B rue Albert Borschette L-1246 Luxembourg

Date: 23 - 26 April 2013 Classes will be held from 9 to 12:30 and from 1:30 to 5:30 pm

Lunch will be provided

Course fee: E 1900 (incl. VAT) course materials included

Contact: Déborah Marx +352 46 66 44 6873 Isf-events@uni.lu

INCEIF

The Global University of Islamic FinanceLorong Universiti A 59100 Kuala Lumpur, Malaysia

T. +603 7651 4035F. +603 7651 4094

www.inceif.org

FACULTY OF LAW, ECONOMICS AND FINANCE

Luxembourg School of Finance4 rue Albert Borschette L-1246 Luxembourg

T. +352 46 66 44 6873 F. +352 46 66 44 6835

www.lsf.lu

Open to the World